The Efficiency of Cryptocurrency Exchange In Asian Emerging Countries

Abstract

Cryptocurrency exchange in Asian emerging countries has grown rapidly in the past few years while there’s still inconsistency in the supervision of the official agency such as Central Bank and the Securities and Exchange Commission which made it unclear about the future direction of cryptocurrency exchange. This paper analyses herding behavior in 4 cryptocurrency exchanges which located in 4 emerging countries in Asian, using total of 18,313,994 trading data both daily and 4 types of high frequency data (240-min, 60-min, 30-min, and 15-min) for the period from 1st January 2019 to 30th November 2024 by the Cross-sectional absolute deviations (CSAD) approach. The result suggests that herding behavior always evident when apply the daily data but undetected with high-frequency data which is more appropriate data. This finding cast light on the efficiency of cryptocurrency exchange in Asian emerging countries and leads to a guideline for official authorities to regulate the market appropriately.